JAPAN POST BANK (7182) Q2 2025 earnings summary

Executive summary

• Net income attributable to owners of parent for FY2024 H1 rose by JPY 40.6bn year-over-year to JPY 222.8bn, reaching 61.0% of the original full-year forecast and 55.7% of the revised forecast.

• Ordinary income decreased 3.4% year-over-year to JPY 1,255.1bn, while net ordinary income increased 26.6% to JPY 321.4bn, representing 55.8% of the full-year forecast.

• Comprehensive income improved significantly to JPY 24.6bn from a loss of JPY 348.2bn in the prior year period.

• Full-year net income and annual dividend forecasts for FY2024 were revised upward to JPY 400.0bn and JPY 56 per share, respectively, due to market changes including a BOJ rate hike.

• The bank continues to target an ROE of 4% or more during the current Mid-term Plan and 5% or more in the early stage of the next plan.

Financial highlights

• Interest income for FY2024 H1 grew by JPY 143.1bn year-over-year to JPY 821.1bn; net interest income increased by JPY 115.0bn to JPY 452.6bn, driven by higher interest on JGBs and due from banks.

• Net fees and commissions for H1 rose by JPY 1.2bn year-over-year to JPY 92.8bn, with steady growth in asset management product commissions.

• Ordinary expenses fell by JPY 111.9bn year-over-year to JPY 933.7bn, despite a JPY 29.4bn rise in interest expenses.

• General and administrative expenses decreased by JPY 3.2bn year-over-year to JPY 462.3bn, mainly due to lower personnel expenses and improved efficiency.

• Total assets increased by JPY 4,425.9bn from March 31, 2024, to JPY 238,333.9bn as of September 30, 2024; investment assets reached JPY 235.5tn, up JPY 4.5tn, with continued investment in JGBs and increased due from banks.

Outlook and guidance

• Full-year net income forecast for FY2024 was revised upward to JPY 400.0bn (up 12.3% year-over-year), and annual dividend per share to JPY 56.

• Net ordinary income forecast set at JPY 575.0bn (up 15.9%).

• The bank aims for ROE of 4% or more in the current plan and 5% or more in the next, with a focus on increasing dividends in line with profit growth.

• The dividend payout ratio is targeted at approximately 50% during the Mid-term Plan, with flexibility to increase to 50–60% for stability and sustainability.